The Norwegian Krone weakened by 8 percent against the Euro and US Dollar during the third quarter of 2015 resulting in a foreign currency exchange loss on a Norwegian Krone denominated intercompany loan balance with a subsidiary using a functional currency of the Euro and on settled foreign currency hedges.

Normal intercompany accounts will generate a gain or loss that is ordinarily reflected on the books of the subsidiary operating in a functional currency other than the reporting currency of the parent company.

5% at the end of 3Q11 relative to the end of 2Q11), as it uses the ruble as a functional currency and had a significant cash balance ($688 mln) at the end of 2Q11, much of which is likely to be in dollars.

The key when translating the accounts of foreign subsidiaries for consolidation is to identify the functional currency of the subsidiary - that of the primary economic environment in which it operates.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.